Should private equity consolidate EDA?

Posted at 4:13 pm on 06/29/2017 by Dr. Rahul Razdan

Would EDA firms and the customers they serve be better of if EDA vendors went private?

In the last decade, the three major EDA companies (Synopsys Inc., Cadence Design Systems Inc., and Mentor Graphics Corp.) have had a combined market capitalization which has stayed largely flat (approx $9.5 billion). In this same time period, the leading hamburger manufacturer, MacDonalds, grew shareholder value by 3X (from $28 billion to $99 billion) and the leading household goods manufacturer, Proctor and Gamble, grew shareholder value by over 50 percent (from $121 billion to $185 billion). This situation is obviously not good for shareholders, but the relatively stagnant state of the industry is also negative for customers and employees. 

EETimes Full Article HERE


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